Koninklijke Bam Groep Nv · EURONEXT:BAMNB
Koninklijke Bam Groep Nv — Royal BAM Group — H1 2013 Earnings Presentation
21 slides from Koninklijke Bam Groep Nv's earnings presentation, Aug 22, 2013
Slide 1: Royal BAM Group nv Half-year results 2013
Royal BAM Group nv Half-year results 2013 Analysts’ meeting Amsterdam, 22 August 2013
Slide 2: Results under pressure from contracting Dutch markets
Results under pressure from contracting Dutch markets • Further deterioration in Dutch markets for Construction and M&E services and Civil engineering • Operational sectors also impacted by negative margins on some large projects outside the Netherlands • Appropriate management actions being taken •
Slide 3: Worsening conditions in Dutch markets
Worsening conditions in Dutch markets … Forecast market growth in 2013 Dutch real GDP forecasts Dec. 2012 vs. June 2013 2013 Non- Civil 1,5% Residential residential engineering new build NL new build NL NL 1,0% 1% -1% 0,5% -3% 0,0% -5% -0,5% -7% -1,0% -9% Aug-12 Sep-12 Oct-12 Apr-13 May-13 Aug-13 No
Slide 4: Impacting BAM's Dutch operational activities
… impacting BAM’s Dutch operational activities Total BAM’s Dutch operational activities 3.600 3.500 3.400 3.300 3.200 3.100 3.000 2.900 2.800 2.700 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Order book Revenue (rolling 12-months) Royal BAM Group | Half-year results 2013 4
Slide 5: Operational losses at some large projects
Operational losses at some large projects • It is not feasible to totally eliminate losses on projects in a diversified construction business • BAM's operational sectors currently have over 200 active, large (> €30m) projects; in H1 2013 we recorded significant losses on a handful of these • The los
Slide 6: Appropriate management actions being taken
Appropriate management actions being taken • Capacity at Dutch companies to be cut • Approximately €25 million reorganisation cost, most in H2 2013 • Additional headcount reduction by approximately 500 fte • Most at Construction and M&E services, some at Civil Engineering • Intensified actions to fu
Slide 7: Operational sectors: disappointing H1 results
Operational sectors: disappointing H1 results • Shrinking Dutch markets, fierce competition; other home markets difficult, but less than the Netherlands • Lower revenue in Dutch companies leads to much lower overhead recovery • Losses on some large projects in other countries Construction and M&E se
Slide 8: Investment sectors: making progress
Investment sectors: making progress Property development Public private partnerships • NL residential markets develop as per Q2 • Good operational results projects 2012 ‘later, lesser, lower’ assumptions • 3 projects transferred to JV in H1 • Big fall in NL revenue from house sales: • Good progress
Slide 9: Revenue and results per sector
Revenue and results per sector 1H13 1H12 Revenue Result1) Revenue Result1) Construction and M&E Services 1,418 -1.1 1,566 30.7 Civil engineering 1,790 9.9 1,757 24.2 Property 123 -9.7 184 -11.3 PPP 131 12.3 147 3.8 Eliminations and other -230 -0.1 -295 -0.1 Total sectors 3,232 11.3 3,359 47.2 (in €
Slide 10: Key figures: income statement
Key figures: income statement 1H13 margin 1H12 margin Total result sectors 11.3 0.3% 47.2 1.4% Group overhead 2.1 3.7 Group interest -2.3 -5.9 Result before tax 11.1 0.3% 45.0 1.3% Impairment at Property -2.4 -247.4 Impairment goodwill - -150.4 Income tax 7.2 38.8 Minority interest 0.3 -0.2 Net resu
Slide 11: Cash flow analysis
Cash flow analysis 1H13 1H12 FY12 • Net cash result Net cash result -13 61 157 negative due to low result and usage of Investments TFA -39 -30 -86 provisions Operational sectors: ∆ WC -280 -251 -42 • Movement working Net Investment Property -1 -32 -72 capital in line with revenue and Net investment
Slide 12: Key figures: balance sheet
Key figures: balance sheet 1H13 FY12 1H12 • Capital base increased due to the positive Balance sheet total 5,138 5,308 5,263 development of cash flow Shareholders’ equity 779 729 697 reserves Capital base 903 852 822 • Recourse net debt Capital ratio 17.6% 16.1% 15.6% increased caused by seasonality
Slide 13: Order book
Order book 1H13 FY12 ∆ Order book down by Construction and construction and M&E M&E services 4,156 4,419 -6% services mostly due to shrinking Dutch markets Civil engineering 5,616 5,617 -0% and selective tendering Property 937 896 +5% PPP 662 649 +2% Eliminations and other -771 -881 Total sectors 10
Slide 14: Outlook
Outlook Royal BAM Group expects the result before tax and non-cash impairments in the second half year of 2013 to be better than in the first half year. The result before tax and non-cash impairments for the full year 2013 is expected to be substantially lower than the comparable result for 2012. Th
Slide 15: Annexes
Annexes: • Property Netherlands • Property investments • PPP investments • Revenue and results (2nd Quarter) • Net debt analysis • Banking convenants Royal BAM Group | Half-year results 2013 15
Slide 16: Property Netherlands
Property Netherlands 2013 2012 Number of home sold from own development: Q1 265 619 Q2 266 535 Q3 438 Q4 314 Total 531 1,906 Stock of unsold and unlet premises : 1H13 FY12 - homes under construction (number) 288 295 - homes finished (number) 161 118 - commercial property (m2) 13,900 12,400 Royal BAM
Slide 17: Property investments
Property investments Q2 2013 Q4 2012 Total investments: Land and building rights 472 468 • NL: 798 million Property development 544 453 • UK: 127 million Total investments (a) 1,016 921 • BE: 53 million • EI: 38 million Non-recourse loans 271 213 Recourse loans 72 85 Total loans (b) 343 298 Property
Slide 18: Public private partnerships investments
Public private partnerships investments Q2 2013 Q4 2012 PPP assets (intangibles, receivables) 369 383 PPP associates/JV 81 93 Non-recourse PPP loans -274 -305 Recourse PPP loans (equity bridges) -67 -55 Investment equity1) 109 116 Committed equity2) 126 130 Total invested & committed equity 235 246
Slide 19: Revenue and results (2nd Quarter)
Revenue and results (2nd Quarter) 2Q 2013 2Q 2012 Revenue Result1) Revenue Result1) Construction and M&E Services 763 -0.9 886 24.0 Civil engineering 1,013 7.0 988 23.0 Property 81 -6.9 85 -11.5 PPP 71 3.7 81 2.0 Eliminations and other -122 0.0 -167 -0.2 Total sectors 1,806 2.9 1,873 37.3 Group over
Slide 20: Net debt analysis
Net debt analysis 1H13 FY12 1H12 Non-recourse PPP loans 274 305 422 Non-recourse project financing 274 217 230 Other project financing 154 145 175 Total ‘project related’ 702 667 827 Subordinated loan 124 124 125 Financial lease liabilities 46 42 39 Bank overdrafts and other loans 165 1 62 Total int
Slide 21: Recourse leverage and coverage ratios
Recourse leverage ratio Recourse interest coverage ratio 3,5 9,0 3,0 7,7 7,8 8,0 7,3 7,1 7,3 2,5 2,0 6,4 6,5 6,4 7,0 6,2 6,1 1,5 1,0 6,0 5,5 1,6 5,0 0,5 1,2 1,3 1,5 1,4 1,5 4,9 4,8 4,5 0,0 0,7 0,8 0,9 0,8 5,0 0,5 0,4 -0,5 4,0 -1,0 -0,2 -0,1 -0,9 -1,5 3,0 Recourse leverage Limit recourse leverage Rec